POS Inventory Audit Guide | Rental Tide Help Center

Overview

The Inventory Audit feature allows businesses to perform physical inventory counts and reconcile them with system records. This helps identify discrepancies, calculate shrinkage costs, and maintain accurate inventory levels.

Key Concepts

Audit Process

An inventory audit involves three main steps:

Physical Count: Counting actual inventory on hand
Comparison: Comparing physical counts with system records
Reconciliation: Updating system records to match physical reality

Shrinkage

Shrinkage is the loss of inventory due to:

Theft
Damage
Administrative errors
Miscounting

The system calculates shrinkage value by multiplying discrepancies by product prices.

Discrepancies

A discrepancy occurs when the physical count doesn't match the system quantity. Discrepancies are color-coded:

Red/Negative: Physical count is less than system count (loss)
Green/Positive: Physical count is more than system count (gain)
Zero: Counts match perfectly

Starting an Audit

Navigate to Audit Tab

Go to POS > Inventory Management
Click the Audit tab in the navigation

View Current Inventory

The audit table displays:

Product Name: Name of the inventory item
SKU: Stock Keeping Unit identifier
Category: Product category
Price: Current selling price
System Qty: Quantity according to system records
Counted: Field to enter your physical count (initially empty)
Discrepancy: Difference between counted and system quantity
Shrinkage Value: Financial impact of the discrepancy

Performing the Physical Count

Counting Methods

Method 1: Sequential Counting

Print the inventory list using the Print Report button
Walk through your inventory systematically
Count each item and record on the printed sheet
Enter counts into the system afterward

Method 2: Real-Time Entry

Use a laptop or tablet in the inventory area
Count items and immediately enter into the Counted field
Move through inventory in order displayed on screen

Method 3: SKU Scanner Method

Use the search/filter to find products by SKU
Scan barcode and enter count for that item
Repeat for all items

Entering Counts

Locate the product row in the audit table
Click in the Counted field
Enter the physical quantity counted
The system automatically calculates:
- Discrepancy = Counted - System Qty
- Shrinkage Value = Discrepancy × Price
Press Enter or Tab to move to the next field

Partial Audits

You don't have to count everything at once:

Enter counts for items as you go
Uncounted items remain empty
You can save your progress and continue later
Only items with entered counts are included in reconciliation

Reviewing Discrepancies

Audit Analysis Button

After entering counts, click Perform Audit to analyze results.

Discrepancies Table

The system displays:

All discrepancies (items where Counted ≠ System Qty)
Sorted by shrinkage value (highest losses first)
Total shrinkage cost summary

Understanding the Data

High-Value Discrepancies

Review these carefully for counting errors
May indicate theft or damage issues
Consider recounting before reconciliation

Positive Discrepancies

May indicate items were:
- Received but not properly logged
- Returned but not processed
- Miscounted in previous audit

Zero Discrepancies

Items counted correctly
Good inventory management
Not shown in discrepancy report

Reconciling Inventory

What Reconciliation Does

Reconciliation updates your system inventory to match physical counts:

System quantities are overwritten with counted amounts
Transaction history is preserved
Audit timestamp is recorded

Before Reconciling

⚠️ Important Checks:

Review all discrepancies carefully
Recount high-value discrepancies
Verify no data entry errors
Confirm you have management approval for large adjustments
Export audit results for records (see below)

Reconciliation Steps

Click Reconcile Inventory button
Review the confirmation dialog:
- Number of items to update
- Total shrinkage cost
- Warning that this action updates live inventory
Click Confirm to proceed
System updates all counted items to match physical counts
Success message confirms completion
Inventory quantities now reflect actual stock

After Reconciliation

Audit timestamp is set
Discrepancies table is cleared
Updated quantities appear in main inventory
Sales and reservations use new quantities
Audit results are saved for export

Exporting Audit Results

Export Options

The Export dropdown provides two formats:

1. Export Full Inventory

Content: All inventory items with current quantities
Columns: Name, SKU, Category, Price, Quantity, GL Code
Use Cases:
- Pre-audit inventory snapshot
- Sharing with accounting
- Backup before major changes

2. Export with Counts

Content: Audit results with before/after comparison
Columns: Name, SKU, System Qty, Counted, Discrepancy, Price, Shrinkage Value
Use Cases:
- Audit documentation
- Management reports
- Accounting adjustments
- Identifying theft patterns

Export Process

Click the Export button (download icon)
Select export type from dropdown menu
File downloads as CSV format
Open in Excel, Google Sheets, or accounting software

File Naming

Export files are automatically named:

inventory_export_YYYY-MM-DD.csv (full inventory)
inventory_audit_YYYY-MM-DD.csv (with counts)

Best Practices

Frequency

Recommended Audit Schedule:

High-value items: Monthly or weekly
Regular inventory: Quarterly
Complete audit: Annually or semi-annually
After major events: End of season, post-sale, after incidents

Preparation

Schedule During Slow Times
- Before opening or after closing
- Off-peak days/seasons
- When fewer transactions occur
Organize Inventory First
- Group similar items
- Clean and straighten displays
- Remove damaged/unsellable items
- Consolidate scattered inventory
Assign Responsibilities
- Divide inventory among staff
- Use two-person teams for accuracy
- Have supervisor review high-value items

During the Audit

Count Systematically
- Follow consistent pattern (left-to-right, top-to-bottom)
- Don't skip items
- Mark areas as completed
Double-Check
- Recount items with high values
- Verify unusual discrepancies
- Have second person verify contested counts
Document Issues
- Note damaged items separately
- Record location of items
- Take photos of problem areas

After the Audit

Analyze Patterns
- Which items consistently have discrepancies?
- Are losses occurring in specific categories?
- Time patterns (season, day of week)?
Investigate Significant Losses
- Review security footage if available
- Interview staff about missing items
- Check for administrative errors
Implement Improvements
- Increase security for high-loss items
- Improve POS procedures
- Adjust reorder points based on actual usage
Financial Reporting
- Export audit results for accounting
- Update inventory asset values
- Record shrinkage expenses

Troubleshooting

Issue: Counted Field Won't Accept Input

Possible Causes:

Browser permissions issue
Field is disabled

Solution:

Refresh the page
Ensure you're on the Audit tab
Check that you have proper permissions
Try a different browser

Issue: Discrepancy Calculation Seems Wrong

Check:

Did you enter the count correctly?
Is the system quantity accurate before starting?
Has inventory changed during the audit (sales, returns)?

Solution:

Verify your entered count
Check recent transactions for that item
If sales occurred during audit, recount that item
Consider pausing POS sales during critical audits

Issue: Unable to Reconcile Inventory

Possible Causes:

No counts entered
Insufficient permissions
Network connectivity issue

Solution:

Ensure at least one item has a count entered
Contact admin to verify permissions
Check internet connection
Try again after refreshing

Issue: Export File is Empty

Possible Causes:

No inventory in system
No counts entered (for "Export with Counts")
Browser blocking download

Solution:

Verify inventory exists in Inventory tab
Perform audit first (for counts export)
Check browser download settings
Try different export format

Issue: Large Discrepancy But Count is Correct

Investigation Steps:

Review transaction history for that item
Check if item was recently received but not logged
Verify no duplicate SKUs in system
Look for recent returns not processed
Check if units of measure changed (boxes vs. individual)

Resolution:

Document the reason for discrepancy
Proceed with reconciliation if count is verified
Update procedures to prevent recurrence

Issue: Audit in Progress But Need to Stop

Mid-Audit Pause:

Your entered counts are not saved automatically
Export current view to save progress externally
Take screenshot of entered counts
Or leave browser tab open and return later
Do not refresh or navigate away

Recommendation:

Complete audit sections systematically
Do category-by-category if needed
Use export function to save snapshots

Audit Report Interpretation

Key Metrics

Total Shrinkage Cost

Sum of all negative discrepancies
Represents financial loss
Compare to sales percentage (industry standard: 1-2%)

Accuracy Rate

Percentage of items with zero discrepancy
Goal: 95%+ accuracy
Track improvement over time

Discrepancy Patterns

Consistently affected categories
Seasonal variations
Day-of-week patterns

Using Audit Data

For Operations:

Identify training needs
Improve product placement
Enhance security measures

For Finance:

Adjust inventory asset values
Record COGS adjustments
Budget for shrinkage

For Purchasing:

Verify vendor counts
Adjust par levels
Improve receiving procedures

Kiosk-Level Audits

If you're using kiosk-level inventory tracking:

Auditing Individual Kiosks

Navigate to Inventory Management
Select specific kiosk from the kiosk dropdown
Go to Audit tab
Only that kiosk's inventory will appear
Perform count for that location
Reconcile affects only that kiosk

Auditing All Locations

Select "All Location Inventory" from kiosk dropdown
Audit shows combined totals across all kiosks
Reconciliation updates location warehouse inventory
Individual kiosk counts remain separate

Best Practice for Kiosks

Audit each kiosk separately for accuracy
Schedule different kiosks on different days
Reconcile individual kiosks, not combined totals
Track shrinkage by location to identify problem areas

Frequently Asked Questions

Can I edit counts after reconciliation?

No. Reconciliation is permanent. To make adjustments after reconciliation, perform a new audit or manually adjust inventory in the Inventory tab.

What happens to items I don't count?

Uncounted items (empty "Counted" field) are not affected by reconciliation. Their system quantities remain unchanged.

Can multiple people count at the same time?

The system doesn't prevent this, but it's not recommended. Coordinate to avoid duplicate entries and confusion. Consider dividing inventory into sections.